Commercial ing Industry in Kosovo Customer Satisfaction 2014 Survey Report prepared by: UBO Consulting
Commercial ing Industry: Customer Satisfaction Survey TABLE OF CONTENTS 1. INTRODUCTION... 8 2. RESEARCH RATIONALE AND METHODOLOGY... 9 2.1. Methodology... 10 2.1.1. Sampling Method... 10 2.2.2. Implementation Process... 10 3. SURVEY RESULTS... 12 3.1. Business Clients... 12 3.1.1. branches, products and services... 12 3.1.2. Professionalism of Staff... 21 3.1.3. Marketing and Promotion... 25 3.1.4. Customer Loyalty Client Retention... 28 3.2. Individual Clients... 31 3.2.1. branches, products and services... 31 3.2.2. Professionalism of Staff... 40 3.2.3. Marketing and Promotion... 43 3.2.4. Customer Loyalty Client Retention... 46 APPENDICES... 49 Appendix I: Sample Distribution... 49 2
Commercial ing Industry: Customer Satisfaction Survey LIST OF FIGURES Figure 1: What is your level of satisfaction with the following products and services? (1 = Not satisfied at all, 10 = Very satisfied)... 12 Figure 2: What is your level of satisfaction with the following products and services? (1 = Not satisfied at all, 10 = Very satisfied) Disaggregated by bank... 13 Figure 3: How important are the following attributes when choosing your bank? (1 = Not important at all, 10 = Very important)... 14 Figure 4: How important are the following attributes when choosing your bank? (1 = Not important at all, 10 = Very important) Disaggregated by bank... 15 Figure 5: What is your level of satisfaction with the following attributes of your bank? (1 = Not satisfied at all, 10 = Very satisfied)... 16 Figure 6: What is your level of satisfaction with the following attributes of your bank? (1 = Not satisfied at all, 10 = Very satisfied) Disaggregated by bank... 17 Figure 7: Do you ever contact the bank by phone? Disaggregated by bank... 18 Figure 8: What was the reason for your most recent telephone contact with the bank? (% of Yes )... 18 Figure 9: Do you ever use the bank webpage to find out any information you need? (% of Yes ) Disaggregated by bank... 19 Figure 10: What were the reasons for your most recent webpage use?... 19 Figure 11: Do you ever use e-banking? (% of Yes ) Disaggregated by bank... 20 Figure 12: Which e-banking features do you use regularly?... 20 Figure 13: In terms of the service you received from the bank staff, how satisfied are you with the following? (1- Not satisfied at all, 10 Very satisfied)... 21 Figure 14: In terms of the service you received from the bank staff, how satisfied are you with the following? (1- Not satisfied at all, 10 Very satisfied) Disaggregated by bank... 21 Figure 15: In thinking about your customer service representatives, were they/did they:... 22 Figure 16: In thinking about your customer service representatives, were they/did they: - Disaggregated by bank... 22 Figure 17: In terms of the service you expected from the telephone contact, please rate the following criteria (1- Not satisfied at all, 10 Very satisfied)... 23 Figure 18: In terms of the service you expected from the telephone contact, please rate the following criteria (1- Not satisfied at all, 10 Very satisfied) Disaggregated by bank... 23 Figure 19: Please rate how satisfied are you with using and find information on the bank webpage (1- Not satisfied at all, 10 Very satisfied)... 24 Figure 20: Please rate how satisfied are you with using and find information on the bank webpage (1- Not satisfied at all, 10 Very satisfied) Disaggregated by bank... 24 Figure 21: To what kind of promotion campaign have you been exposed the most?... 25 Figure 22: To what kind of promotion campaign have you been exposed the most? Disaggregated by bank... 25 Figure 23: In which part of the day you are exposed to these campaigns?... 26 Figure 24: Rating bank s advertisements and promotional campaigns (1 lowest score, 10 highest score)... 26 3
Commercial ing Industry: Customer Satisfaction Survey Figure 25: Rating bank s advertisements and promotional campaigns (1 lowest score, 10 highest score) Disaggregated by bank... 27 Figure 26: What source of information have you used when looking for information regarding bank s products and services?... 27 Figure 27: Would you recommend your bank to others? (% of Yes )... 28 Figure 28: How likely are you to continue to be a customer with your bank for another year? (Rate from 1 to 7, where 1 = Not likely at all, 10 = Very likely)... 29 Figure 29: Can you please tell us what would make you go to another bank?... 29 Figure 30: Can you please tell us what would make you go to another bank? Disaggregated by bank... 30 Figure 31: What is your level of satisfaction with the following products and services? (1 = Not satisfied at all, 10 = Very satisfied)... 31 Figure 31: What is your level of satisfaction with the following products and services? (1 = Not satisfied at all, 10 = Very satisfied) Disaggregated by bank... 32 Figure 32: How important are the following attributes when choosing your bank? (1 = Not important at all, 10 = Very important)... 33 Figure 33: How important are the following attributes when choosing your bank? (1 = Not important at all, 10 = Very important) Disaggregated by bank... 34 Figure 34: What is your level of satisfaction with the following attributes of your bank? (1 = Not satisfied at all, 10 = Very satisfied)... 35 Figure 35: What is your level of satisfaction with the following attributes of your bank? (1 = Not satisfied at all, 10 = Very satisfied) Disaggregated by bank... 36 Figure 36: Do you ever contact the bank by phone? Disaggregated by bank... 37 Figure 37: What was the reason for your most recent telephone contact with the bank? (% of Yes ). 37 Figure 38: Do you ever use the bank webpage to find out any information you need? (% of Yes ) Disaggregated by bank... 38 Figure 39: What were the reasons for your most recent webpage use?... 38 Figure 40: Do you ever use e-banking? (% of Yes ) Disaggregated by bank... 39 Figure 41: Which e-banking features do you use regularly?... 39 Figure 42: In terms of the service you received from the bank staff, how satisfied are you with the following? (1- Not satisfied at all, 10 Very satisfied)... 40 Figure 43: In terms of the service you received from the bank staff, how satisfied are you with the following? (1- Not satisfied at all, 10 Very satisfied) Disaggregated by bank... 40 Figure 44: In thinking about your customer service representatives, were they/did they:... 41 Figure 45: In terms of the service you expected from the telephone contact, please rate the following criteria (1- Not satisfied at all, 10 Very satisfied)... 41 Figure 46: In terms of the service you expected from the telephone contact, please rate the following criteria (1- Not satisfied at all, 10 Very satisfied) Disaggregated by bank... 42 Figure 47: Please rate how satisfied are you with using and find information on the bank webpage (1- Not satisfied at all, 10 Very satisfied)... 42 Figure 48: Please rate how satisfied are you with using and find information on the bank webpage (1- Not satisfied at all, 10 Very satisfied) Disaggregated by bank... 43 Figure 49: To what kind of promotion campaign have you been exposed the most?... 43 4
Commercial ing Industry: Customer Satisfaction Survey Figure 50: To what kind of promotion campaign have you been exposed the most? Disaggregated by bank... 44 Figure 51: In which part of the day you are exposed to these campaigns?... 44 Figure 52: Rating bank s advertisements and promotional campaigns (1 lowest score, 10 highest score)... 45 Figure 53: Rating bank s advertisements and promotional campaigns (1 lowest score, 10 highest score) Disaggregated by bank... 45 Figure 54: What source of information have you used when looking for information regarding bank s products and services?... 46 Figure 55: Would you recommend your bank to others? (% of Yes )... 46 Figure 56: How likely are you to continue to be a customer with your bank for another year? (Rate from 1 to 7, where 1 = Not likely at all, 10 = Very likely)... 47 Figure 57: Can you please tell us what would make you go to another bank?... 48 Figure 58: Can you please tell us what would make you go to another bank? Disaggregated by bank... 48 5
Commercial ing Industry: Customer Satisfaction Survey EXECUTIVE SUMMARY The banking system in recent years has been characterized by the expansion of infrastructure, the number of branches and sub-branches of the commercial banks. Although most of current banking products enter in the group of classical banking services, in recent years banks have begun expansion of their services, with some innovations for market, such as: leasing, electronic banking services and other services. In general products, products and services offered by s include: Deposit, Loans, Service of payment /transfers internal and external, Business documentary (Guarantees and letter of credit), Electronic services, Other products. With the strengthening of the banking sector in Kosovo, the services/products offered to customers in this sector have also improved. Since the standards for services/products are constantly increasing, the banks in Kosovo have raised their quality in providing services/products proportionally with international standards and customers requests. As per this subject UBO Consulting conducted a customer satisfaction survey with banking clients throughout Kosovo, specifically a quantitative research with the purpose of gathering statistically reliable data and focused perceptions. The overall objectives of this study were: Identifying the customer satisfaction level with bank products and services Identifying of client perceptions of weak and strong points of the banks Identifying of key competitors, competitive advantages and disadvantages Provision of recommendations regarding the improvement of products and services that banks offer The survey was based on a quantitative survey of 900 respondents across seven regions of Kosovo, respectively face-to-face interviews were conducted with 900 adults. The sample population consisted of two sub-sets: 550 individual bank clients and 350 business clients. 6
Commercial ing Industry: Customer Satisfaction Survey Key Findings Business Clients Reliability, trustworthiness, interest rates, and information confidentiality are the top three most important attributes for business clients when choosing a bank. Business clients showed low satisfaction levels with interest rates, fees, and loan payment terms. The majority of business clients were exposed the most to TV promotional campaigns (67%). In regard to advertisements and promotional campaigns delivered by their banks, business clients showed average levels of satisfaction. Business clients of TEB were the most likely to recommend their bank to others (78%), followed by clients of NLB Prishtina (69%), and ProCredit (67%). Around half of the interviewed business clients of a Kombetare Tregtare (53%) said they would not recommend their bank to others. Business clients of a per Biznes were the most likely to continue to be customers of that bank for another year, whereas the clients of NLB Prishtina are the least likely to do so. Individual Clients Speed of loan approval and disbursement process, branches and ATMs, and information confidentiality are the top three most important attributes for individual clients when choosing a bank. Individual clients showed least satisfaction with interest rates, fees, and loan payment terms. More than half of interviewed individual clients have been exposed the most to TV promotional campaigns (56%). When rating advertisements and promotional campaigns of their banks, individual clients showed average to high levels of satisfaction. Individual clients of TEB were most likely to recommend their bank to others (80%), followed by clients of a Kombetare Tregtare (77%), and NLB Prishtina (73%). Individual clients of NLB Prishtina were the most likely to continue to be customers of that bank for another year, whereas the clients of ProCredit are the least likely to do so. 7
Commercial ing Industry: Customer Satisfaction Survey 1. INTRODUCTION Kosovo s financial sector which is dominated by banks, has expanded rapidly ever since 2000. Financial system assets as a share of GDP more than doubled from 33 percent in 2003 to about 74 percent as of June 2012. During these last 15 years, along with political and social improvements, of great importance were also the economic developments in various sectors, especially in the banking sector. This sector has been an engine of the overall economic growth of the country through support provided to private sector through different products such as loans, deposits, and mortgages, to various businesses in order to help them expand and realize their strategic plans. In 2013, there were 9 banks operating in Kosovo, with 310 branches and sub-branches spread across Kosovo. These figures are an indication of a positive development of the banking sector. Commercial banks are focusing their activities on electronic payments, in order to increase the use, as much as possible, of the electronic instruments through banking cards, ATM, e-banking, direct debit etc. As the digitalization of bank services has reached Kosovar clients, both mobile and internet banking have become significant criteria to customer s bank choices. Similarly, the methods of delivering quality traditional services such as Checking/Current accounts, Savings, ATM Cards, Check Books, Deposit Accounts, Loan and Credit Cards have become critical. Amongst regular bank clients, the maintenance costs, ability to use the card without limitations and other similar issues are yet to be tackled. 8
Commercial ing Industry: Customer Satisfaction Survey 2. RESEARCH RATIONALE AND METHODOLOGY Since the standards for services/products are constantly increasing, the banks in Kosovo have raised their quality in providing services/products proportionally with international standards and customers requests. The best way to reflect the development of a bank's internal development regarding the provision of services and products for their clients is to constantly communicate with them (retail and corporate banking costumers) and obtain their perceptions towards the products and services that banks provide, and gain up-to-date requests on new products/services. s are required to monitor service quality and perceptions in an attempt to improve customer retention. A bank s primary responsibility apart from profit is to serve to its customers. Through products and services a bank offers to its clients a choice, while on the other hand brand will decide whether clients will choose one bank or another. Brand is a valuable asset of a bank. It is the main visible element that affects people and enables possible interaction with them. Furthermore, customers are considered to be the most valuable asset of one private entity and key foundation of a business success and fine services is the key to retaining those customers. As per this subject UBO Consulting conducted a customer satisfaction survey with banking clients throughout Kosovo, specifically a quantitative research with the purpose of gathering statistically reliable data and focused perceptions which would: Measure the level of satisfaction regarding the banks services and products; Identifying of client perceptions of weak and strong points of the banks Identify clients awareness on and usage of banks products and services, Identify potential concerns, needs and recommendations, in regard to banks products/services with the purpose of further improving/modifying/removing them The process of measuring the perceptions of banking clients was conducted according to professional standards for quantitative survey methodologies, including questionnaire design and data collection, analysis and reporting. This survey makes it possible, among other things, to draw conclusions and recommendations for future actions and initiatives aimed at providing better services and more suitable products for clients. Customer satisfaction levels reveal insightful information which will assist banks in making better decisions for developing new services or products. 9
Commercial ing Industry: Customer Satisfaction Survey 2.1. Methodology All facets of the study were completed by UBO Consulting senior staff and researchers. These aspects include: sample design, survey design, pre-test, computer programming, fielding, coding, editing, verification, validation and logic checks, statistical analysis, and report writing. 2.1.1. Sampling Method The survey was based on a quantitative survey of 900 respondents across seven regions of Kosovo, respectively face-to-face interviews were conducted with 900 adults. The sample population consisted of two sub-sets: 550 individual bank clients and 350 business clients. The distribution of the sampling frame was based on the allocation of 350 interviews with businesses and 550 interviews with private individuals in 7 regions of Kosovo. The sample was organized by allocating equal number of interview throughout 7 regions of Kosovo since the results will be analyzed in regard to businesses and private individuals, and for each bank separately. Interviewing process with private individuals was executed of the sample corresponded to three stages: 1) household selection based on random walk process (every fourth house on the block/street), 2) pre screen question, identifying the eligible interview candidate making sure that the person has a banking account, and 3) conducting face-to-face interviews. 2.2.2. Implementation Process Survey design at UBO Consulting is a careful, deliberative process to ensure fair, objective and balanced surveys. Staff members, with years of survey design experience, edit out any bias. Phase 1- Preparatory phase Questionnaire development: Prior to commencement of fieldwork the questionnaire was developed by UBO Consulting. This was performed only after conducting a careful desk research and evaluation of the situation on the ground. In this regard the objectives of the research were adapted with the potential requirements for information of commercial banks. The interview duration was approximately 23 minutes. 10
Commercial ing Industry: Customer Satisfaction Survey Recruitment of survey team: The team was carefully selected with preference given to experienced interviewers. The selected field work team comprised 18 fieldworkers, two field supervisors, one coordinator. UBO Consulting used Tablet PC's for field quantitative interviews because it was a more efficient way of collecting information. Instead of using gathering data using paper and pen, and then double keying all the information, we use Tablet PCs as a collection device to compile data instantly and to send data back to a central server. The fieldwork supervisors allowed for supervision in all the regions being surveyed. Training of survey team: One-day training was conducted for the enumerators. The purpose of this training was to ensure that: i) enumerators fully understand the survey questions, ii) enumerators are familiar with the methodology of sampling and interviewing, and iii) enumerators are effective interviewers and can administer the interviews easily, accurately, consistently, and naturally. Phase 2 - Data Collection Quality Checks: This was an integral part of fieldwork. Quality check comprised of: The field supervisors were responsible for carrying out the first quality control by screening each questionnaire submitted. The control was conducted for matching the proposed sample with the one interviewed by enumerators. The field supervisors have contacted businesses and private individuals interviewed for verification and to ensure authenticity of results and safeguard the fairness of the research. Thirty per cent of the questionnaires were back-checked. Phase 3 - Data entry, tabulation, and analysis Data validation (cleaning) is an important part of any process that involves large volumes of data. Our experienced data validation professionals ensured that the data did not contain any unwanted codes, errors, inconsistencies, or missing data. The data entry was entered in a custom developed software application, and analysis was done in SPSS. Cross-tabulations were generated to reveal association between data based on a number of variables: age, gender, ethnicity, education level, employment status, income, region and settlement. 11
Commercial ing Industry: Customer Satisfaction Survey 3. SURVEY RESULTS To obtain a more thorough picture of customer satisfaction in commercial banking industry, the results have been split in two groups, representing two types of respondents: business clients individual clients 3.1. Business Clients The following results represent the views of respondents that stated they have a business account with one of the banks currently operating in Kosovo. 3.1.1. branches, products and services When asked to rate some of the products and services banks offer, the respondents were most satisfied with e-banking, standing orders, and manual cash payments. They showed lower satisfaction with domestic money transfers, international money transfers, and loans in particular. The following figure shows the average scores respondents gave for each product/service, and how much their responses vary from the average explained by the spread bars (standard deviation). Figure 1: What is your level of satisfaction with the following products and services? (1 = Not satisfied at all, 10 = Very satisfied) 6.97 6.06 6.73 7.54 8.08 7.34 7.63 7.41 7.77 Average Spread 5.31 2.26 2.87 2.72 2.31 1.90 2.03 2.04 1.83 1.99 2.58 Current account International money transfer Domestic money transfer Interbank money transfer E-banking Payroll processing Standing order Savings account Manual cash payments Loan 12
Commercial ing Industry: Customer Satisfaction Survey As can be seen on the table below, there are no major differences in terms of satisfaction with bank products and services between business clients of different banks. While a per Biznes is the highest rated bank in five categories, Raiffeisen is rated lowest in five categories. Figure 2: What is your level of satisfaction with the following products and services? (1 = Not satisfied at all, 10 = Very satisfied) Disaggregated by bank What is your level of satisfaction with the following products and services? Raiffeisen ProCredit What bank do you mainly use? a Ekonomike TEB a per Biznes a Kombetare Tregtare NLB Prishtina Current account 6.52 6.98 6.80 7.21 7.94 6.82 6.75 International money transfer 5.43 6.48 6.29 6.37 6.36 5.14 6.19 Domestic money transfer 6.47 6.82 6.14 7.00 7.17 6.56 6.86 Interbank money transfer 7.05 7.88 7.26 7.72 7.72 7.18 7.95 E-banking 7.90 8.15 7.66 8.01 8.36 8.82 8.11 Payroll processing 7.00 7.64 7.00 7.57 7.16 7.00 7.75 Standing order 7.43 7.83 7.26 7.84 8.10 7.26 7.55 Savings account 7.07 7.69 7.27 7.60 7.65 7.13 7.45 Manual cash payments 7.30 7.91 7.65 8.03 8.21 7.50 7.98 Loan 5.16 5.52 4.90 5.35 6.44 5.46 4.34 Highest score Lowest score Reliability, trustworthiness, interest rates, and information confidentiality are the top three most important attributes for business clients when choosing a bank. Loan payment terms, range of loan products, and fees are also considerably important attributes. On the other hand, although the bottom three attributes in terms of importance are working hours, availability of information brochures and orientation signs, it should be noted that their average scores are still significantly high. 13
Commercial ing Industry: Customer Satisfaction Survey Figure 3: How important are the following attributes when choosing your bank? (1 = Not important at all, 10 = Very important) Average Spread Reliability, trustworthiness Interest rates Information confidentiality Fees Loan payment terms Efficient, no wait service Range of services/ products Quality of advise Range of loan products Brand/image of the bank Speed of loan approval and disbursement process Branches and ATMs Proximity of branch office to your workplace Clean & well cared facilities Orientation signs Accessibility of key account managers Availability of information brochures Working hours 1.45 1.94 1.71 2.00 2.18 2.08 1.74 1.65 2.25 1.99 2.07 1.69 1.66 1.69 1.59 2.06 1.58 1.75 9.34 9.13 8.97 8.83 8.72 8.54 8.49 8.48 8.47 8.46 8.38 8.11 8.10 8.08 7.90 7.79 7.70 7.67 Disaggregated by bank, the scores show that similar attributes are important for business clients of different banks. The table was formatted using a color scheme where the lowest rated attributes within a bank are of red color, whereas the highest rated attributes are given the blue color. 14
Commercial ing Industry: Customer Satisfaction Survey Figure 4: How important are the following attributes when choosing your bank? (1 = Not important at all, 10 = Very important) Disaggregated by bank How important are the following attributes when choosing your bank? Raiffeisen ProCredit What bank do you mainly use? a a TEB per Ekonomike Biznes a Kombetare Tregtare NLB Prishtina Brand/image of the bank 8.15 8.34 8.18 8.69 8.65 9.17 8.14 Reliability, trustworthiness 9.53 9.32 9.36 9.33 9.08 9.42 9.23 Interest rates 8.80 9.18 9.76 8.93 9.39 9.18 9.25 Fees 8.53 8.95 9.56 8.42 9.03 9.00 9.00 Working hours 7.64 7.55 7.64 7.74 7.44 8.11 7.57 Loan payment terms 8.45 8.25 9.25 8.67 8.98 9.23 9.02 Accessibility of key account managers 7.79 7.41 7.46 7.72 8.17 8.77 7.70 Range of services/ products 8.40 8.52 8.44 8.37 8.69 8.77 8.37 Range of loan products 8.47 8.36 8.74 8.11 8.59 9.13 8.41 Speed of loan approval and disbursement process 8.15 8.30 8.26 8.42 8.83 8.80 8.14 Proximity of branch office to your workplace 8.03 7.58 8.29 8.24 8.31 8.46 8.32 Branches and ATMs 8.13 7.97 7.75 8.34 8.06 8.41 8.00 Information confidentiality 8.82 9.02 9.33 9.05 9.18 9.09 8.36 Quality of advise 8.37 8.58 8.17 8.53 8.55 8.88 8.27 Clean & well cared facilities 8.00 7.77 7.69 8.19 8.45 8.41 8.23 Efficient, no wait service 8.38 8.04 8.50 8.73 9.06 8.73 8.86 Availability of information brochures 7.76 7.52 7.40 7.58 7.80 8.14 7.82 Orientation signs 7.93 7.66 7.63 7.99 7.87 8.23 8.08 When asked how satisfied they are with the aforementioned attributes, business clients showed highest satisfaction with clean and well-cared facilities, reliability/trustworthiness, orientation signs, and quality of advice. Meanwhile, they are least satisfied with interest rates, fees, and loan payment terms. 15
Commercial ing Industry: Customer Satisfaction Survey Figure 5: What is your level of satisfaction with the following attributes of your bank? (1 = Not satisfied at all, 10 = Very satisfied) Average Spread Clean & well cared facilities Information confidentiality Reliability, trustworthiness Orientation signs Quality of advise Availability of information brochures Brand/image of the bank Working hours Range of services/ products Branches and ATMs Proximity of branch office to your workplace Accessibility of key account managers Range of loan products Efficient, no wait service Speed of loan approval and disbursement process Loan payment terms Fees Interest rates 1.70 1.91 2.08 1.66 1.53 1.78 2.22 2.02 1.80 2.01 1.98 2.11 2.47 2.61 2.13 2.30 2.77 2.55 8.69 8.21 7.95 7.92 7.92 7.88 7.66 7.41 7.30 7.22 7.04 6.86 6.36 6.33 6.11 5.40 4.54 4.24 If we compare the average scores of each clients of each bank in terms of satisfaction with bank attributes, it can be observed that similar scores have been given to these attributes. A color scheme was used to visualize the higher rated attributes (blue) and the lower rated attributes (red). 16
Commercial ing Industry: Customer Satisfaction Survey Figure 6: What is your level of satisfaction with the following attributes of your bank? (1 = Not satisfied at all, 10 = Very satisfied) Disaggregated by bank What is your level of satisfaction with the following attributes of your bank? Raiffeisen Procredit What bank do you mainly use? a Ekonomike TEB a per Biznes a Kombetare Tregtare NLB Prishtina Brand/image of the bank 7.28 7.93 7.80 8.08 7.63 7.63 7.05 Reliability, trustworthiness 7.76 8.23 8.07 8.06 8.06 7.79 7.50 Interest rates 3.76 4.49 4.33 4.47 4.48 3.91 4.24 Fees 3.84 4.85 4.52 5.02 4.97 3.86 4.70 Working hours 7.18 7.38 7.52 7.64 7.55 7.30 7.33 Loan payment terms 5.26 5.64 5.63 5.56 5.39 4.82 5.34 Accessibility of key account managers 6.82 7.03 6.69 7.09 6.94 6.77 6.41 Range of services/ products 6.97 7.55 7.28 7.51 7.48 7.00 7.19 Range of loan products 5.79 6.83 6.34 6.49 7.20 5.78 6.10 Speed of loan approval and disbursement process 5.94 6.72 6.32 6.24 6.19 5.40 5.50 Proximity of branch office to your workplace 6.76 7.28 6.78 6.81 7.44 7.50 6.82 Branches and ATMs 7.18 7.54 6.67 7.21 7.53 7.35 6.77 Information confidentiality 7.67 8.42 8.44 8.50 8.69 8.05 7.87 Quality of advise 7.49 8.00 7.94 8.05 8.50 7.86 7.70 Clean & well cared facilities 8.42 8.47 8.72 8.58 9.05 9.07 8.95 Efficient, no wait service 6.12 6.18 6.63 6.39 6.76 6.34 6.23 Availability of information brochures 8.06 7.79 8.02 7.71 8.30 7.55 7.89 Orientation signs 8.03 7.78 8.04 7.64 8.24 8.10 7.92 In regard to communicating with bank officials, only 27 percent claimed they contacted the bank by phone. From those who contacted it, a majority of 87 percent said they call the bank 1-3 times a month. Looking at business clients of which bank contact their bank by phone most often, it can be observed that TEB clients are most likely to call their bank (35.2%), followed by a Kombetare Tregtare (30%), and ProCredit (27.4%). The least likely to contact their bank by phone are clients of a per Biznes and a Ekonomike. 17
Commercial ing Industry: Customer Satisfaction Survey Figure 7: Do you ever contact the bank by phone? Disaggregated by bank TEB 35.2% a Kombetare Tregtare 30.6% Procredit 27.4% Raiffeisen 24.3% NLB Prishtina 22.2% a per Biznes 21.9% a Ekonomike 21.9% For the majority (49%) of those who call the bank, the reason for it was to confirm a fund transfer, 38 percent called to obtain information on account, whereas 6 percent of them enquired about loans. Figure 8: What was the reason for your most recent telephone contact with the bank? (% of Yes ) Confirmation of fund transfer 47% Account information/balance 38% Loan enquiry 6% Complaint 2% hours/phone number/address 1% Other 5% 18
Commercial ing Industry: Customer Satisfaction Survey Only 19 percent of all business clients stated they use bank s webpage for information they need. Clients of TEB (26.8%) and those of a Kombetare Tregtare (25%) are most likely to use their bank s website to find information they need. Figure 9: Do you ever use the bank webpage to find out any information you need? (% of Yes ) Disaggregated by bank TEB 26.8% a Kombetare Tregtare 25.0% Procredit 19.2% a per Biznes 18.8% a Ekonomike 18.8% Raiffeisen 14.3% NLB Prishtina 11.1% Of those who visit the webpage, the majority do it 1-3 times a week (32%), and 28 percent visit it once every two weeks. The most mentioned reasons by respondents for their most recent webpage visit were to acquire account information (80%), confirm a fund transfer (43%), enquire about a loan (37%). Figure 10: What were the reasons for your most recent webpage use? 80% 43% 37% 12% 3% Account Confirmation of fund information/balance transfer Loan enquiry hours/phone number/address Complaint 19
Commercial ing Industry: Customer Satisfaction Survey Nineteen percent of interviewed business clients declared they use e-banking services. Small differences have been found between clients of different banks in this regard, with ProCredit clients the most likely to use e-banking services, and a per Biznes clients the least likely to do so. Figure 11: Do you ever use e-banking? (% of Yes ) Disaggregated by bank Procredit 26.0% TEB 19.7% NLB Prishtina 19.4% a Kombetare Tregtare 19.4% a Ekonomike 18.8% Raiffeisen 15.7% a per Biznes 9.4% The majority of those that use e-banking, use it 1-3 times a week (43%), 18 percent use it at least once a day, while others use it rarer. Conducting and reviewing financial transactions is the feature used regularly by 48 percent of business clients that use e-banking services. Meanwhile, 28 percent use e-banking to check their statements, and the other 24 percent to complete transactions. Figure 12: Which e-banking features do you use regularly? 48% 28% 24% Conduct and review financial transactions Check your statements Complete transactions 20
Commercial ing Industry: Customer Satisfaction Survey 3.1.2. Professionalism of Staff In terms of service received from the bank staff, business clients showed average levels of satisfaction in general. Similar average ratings were given for all aspects of staff professionalism, with all scores slightly above the midpoint, as can be seen in the graph below. Figure 13: In terms of the service you received from the bank staff, how satisfied are you with the following? (1- Not satisfied at all, 10 Very satisfied) Average Spread 5.85 5.75 5.73 5.69 5.64 5.82 5.84 3.43 3.16 3.17 3.01 2.99 3.07 3.60 Friendly and courteous manner Knowledge of bank's products & services Willingness to listen and respond to your needs Fast and efficient service Recognition of you as a valued customer Professional and smart Appearance As shown on the table below, there are only minor variations in the average scores of business clients of each bank in regard to the satisfaction with the services they received from the staff. The blue color represents the highest scores, whereas the red represents the lowest scores. Figure 14: In terms of the service you received from the bank staff, how satisfied are you with the following? (1- Not satisfied at all, 10 Very satisfied) Disaggregated by bank What bank do you mainly use? In terms of the service you received from the bank staff, how satisfied are you with the following? Raiffeisen Procredit a Ekonomike TEB a per Biznes a Kombetare Tregtare NLB Prishtina Friendly and courteous manner 5.63 5.81 5.66 6.43 5.16 6.46 5.36 Knowledge of bank's products & services 5.82 5.74 5.34 5.98 5.16 6.19 5.69 Willingness to listen and respond to your needs 5.85 5.55 5.44 6.28 5.02 6.03 5.50 Fast and efficient service 5.89 5.45 5.71 6.08 5.06 6.21 5.09 Recognition of you as a valued customer 5.67 5.77 5.38 6.05 5.20 5.55 5.31 Professional and smart 5.86 5.86 5.71 6.14 5.00 6.14 5.64 Appearance 5.76 6.02 5.61 5.97 4.85 6.73 5.64 21
Commercial ing Industry: Customer Satisfaction Survey Evaluating the customer service representatives at their bank, the majority of interviewed business clients stated that they were provided with the right information (93%), the customer service representatives were helpful (93%), solved the problem (89%), and provided clear answers (89%). The respondents were also satisfied with the quickness of service, whereas a lower percentage thought that the customer service representatives appeared well-organized (76%). Figure 15: In thinking about your customer service representatives, were they/did they: Yes No Helpful Have the right information Solve the problem Provide clear answers Quickly understand your questions Quick Appear well organized 92% 90% 89% 89% 86% 86% 76% 3% 4% 3% 5% 9% 9% 5% *The white space respresents the "Don't know/no opinion" answers The scores on the table below show that business clients of all banks are generally satisfied with the customer service representatives they dealt with. Figure 16: In thinking about your customer service representatives, were they/did they: - Disaggregated by bank In thinking about your customer service representative, were they/did they: Raiffeisen Procredit What bank do you mainly use? a Ekonomike TEB a per Biznes a Kombetare Tregtare NLB Prishtina Helpful 90.0% 89.0% 87.5% 95.8% 90.6% 97.2% 91.7% Have the right information 85.7% 90.4% 84.4% 94.4% 96.9% 94.4% 83.3% Quickly understand your questions 85.7% 86.3% 81.3% 87.3% 84.4% 91.7% 80.6% Provide clear answers 85.7% 80.8% 90.6% 93.0% 90.6% 97.2% 88.9% Solve the problem 81.4% 89.0% 87.5% 94.4% 96.9% 94.4% 86.1% Appear well-organized 67.1% 75.3% 75.0% 81.7% 81.3% 77.8% 77.8% Quick 80.0% 84.9% 81.3% 93.0% 81.3% 91.7% 88.9% 22
Commercial ing Industry: Customer Satisfaction Survey Those who contacted the bank by phone, were in general satisfied with the service they received. The average ratings for the following criteria shown in the graph below were positive when rated from 1 to 10 on a satisfaction level. Figure 17: In terms of the service you expected from the telephone contact, please rate the following criteria (1- Not satisfied at all, 10 Very satisfied) Average Spread 8.25 8.43 8.80 8.20 1.73 1.87 1.57 1.71 Question or problem handled to your satisfaction Call handled promptly, not kept on hold Courteous and professional manner Quickly connected to the right person a Kombetare Tregtare received the highest average scores from its business clients in regard to telephone service, whereas a Ekonomike received the lowest scores overall. Figure 18: In terms of the service you expected from the telephone contact, please rate the following criteria (1- Not satisfied at all, 10 Very satisfied) Disaggregated by bank What bank do you mainly use? In terms of the service you expected from the telephone contact, please rate the a following criteria: Raiffeisen Procredit a a per Kombetare NLB Ekonomike TEB Biznes Tregtare Prishtina Question or problem handled to your satisfaction 7.28 8.43 7.64 8.43 8.50 9.05 8.50 Call handled promptly, not kept on hold 7.84 8.73 7.00 8.43 9.36 8.91 8.71 Courteous and professional manner 8.59 8.73 7.86 8.76 9.57 9.18 9.14 Quickly connected to the right person 8.13 8.13 7.21 8.14 8.93 8.50 8.50 As far as satisfaction with information on the bank webpage, average ratings show a high level of contentment with web design and look, clarity and completeness of information, organization and ease of navigation. 23
Commercial ing Industry: Customer Satisfaction Survey Figure 19: Please rate how satisfied are you with using and find information on the bank webpage (1- Not satisfied at all, 10 Very satisfied) 8.23 8.05 8.08 8.33 1.30 1.82 1.70 2.01 Clarity and completeness of information Well-organized Ease of navigation Web design and look Despite high general satisfaction levels with the websites of commercial banks, business clients of Raiffeisen and NLB Prishtina were less satisfied with the web design and look. The detailed scores are presented in the table below. Figure 20: Please rate how satisfied are you with using and find information on the bank webpage (1- Not satisfied at all, 10 Very satisfied) Disaggregated by bank Please rate how satisfied are you with using and find information on the bank webpage: Raiffeisen Procredit What bank do you mainly use? a Ekonomike TEB a per Biznes a Kombetare Tregtare NLB Prishtina Clarity and completeness of information 8.50 8.71 8.50 7.56 8.50 8.67 6.50 Well-organized 7.00 7.86 8.75 7.28 9.75 9.17 7.00 Ease of navigation 7.00 8.18 8.50 7.47 9.25 9.17 6.50 Web design and look 5.75 8.71 9.00 7.75 9.75 9.67 6.50 24
Commercial ing Industry: Customer Satisfaction Survey 3.1.3. Marketing and Promotion The majority of business clients stated that they have been exposed the most to TV promotional campaigns (67%). Following TV promotional campaigns, brochures and the internet are the next most common sources of promotional campaigns that business clients have been exposed to, both with 10 percent. Figure 21: To what kind of promotion campaign have you been exposed the most? Don't Know 2% Other 2% Billboards Radio 4% 5% Internet 10% Brochures 10% TV 67% As shown on the table below, the majority of business clients of all banks are exposed to TV promotional campaigns. Figure 22: To what kind of promotion campaign have you been exposed the most? Disaggregated by bank To what kind of promotion campaign have you been exposed the most? Raiffeisen Procredit What bank do you mainly use? a Ekonomike TEB a per Biznes a Kombetare Tregtare NLB Prishtina TV 70.0% 64.4% 59.4% 74.6% 71.9% 58.3% 61.1% Radio 5.7% 4.1% 12.5% 1.4% 6.3% 8.3% Internet 4.3% 11.0% 9.4% 12.7% 9.4% 13.9% 8.3% Billboards 4.3% 5.5% 4.2% 3.1% 13.9% Brochures 12.9% 11.0% 12.5% 5.6% 6.3% 13.9% 8.3% Other 2.9% 3.1% 2.8% 5.6% Don't Know 4.1% 3.1% 1.4% 3.1% 2.8% 2.8% 25
Commercial ing Industry: Customer Satisfaction Survey More than half of the respondents (52%) said they were exposed to these campaigns the most during the evening, 23 percent were exposed during afternoon, and 21 percent were exposed the most at mornings. Figure 23: In which part of the day you are exposed to these campaigns? 52% 21% 23% 5% Morning Afternoon Evening Don't Know In regard to advertisements and promotional campaigns delivered by their banks, business clients showed somewhat average levels of satisfaction, with the scores shown in the graph below. Figure 24: Rating bank s advertisements and promotional campaigns (1 lowest score, 10 highest score) Average Spread How relevant are the campaign messages to your interests? 2.08 6.59 Rate your bank s promotional campaigns 2.20 6.65 Advertisments tell you about the key benefits of being a customer at your bank 2.24 6.67 Advertisments tell you how your bank is different from other banks 2.33 7.00 26
Commercial ing Industry: Customer Satisfaction Survey No major differences were observed in this regard between business clients of different banks. The table below provides the average scores for each bank. Figure 25: Rating bank s advertisements and promotional campaigns (1 lowest score, 10 highest score) Disaggregated by bank To what extent do the advertisements tell you how your bank is different from other banks? To what extent do the advertisements tell you about the key benefits of being a customer at your bank? How would you rate your bank s promotional campaigns? How relevant are the campaign messages to your interests? Raiffeisen Procredit What bank do you mainly use? a a TEB per Ekonomike Biznes a Kombetare Tregtare NLB Prishtina 7.00 7.12 6.68 7.27 6.76 7.13 6.64 6.88 7.05 6.36 6.76 6.27 6.67 6.00 6.73 7.10 6.14 7.07 6.27 6.50 5.82 6.66 6.90 6.09 6.88 6.37 6.29 6.27 The vast majority of 89 percent of business respondents said that they visit one of the branches of the bank when they are interested in information regarding products and services of that bank. Figure 26: What source of information have you used when looking for information regarding bank s products and services? 89% 8% 3% 1% 's webpage A friend or a relative A visit at bank's branch Don't Know 27
Commercial ing Industry: Customer Satisfaction Survey 3.1.4. Customer Loyalty Client Retention When asked if they would recommend their bank to others, business clients of TEB were most likely to do so (78%), followed by clients of NLB Prishtina (69%), and ProCredit (67%). Around half of the interviewed business clients of a Kombetare Tregtare (53%) said they would not recommend their bank to others. Figure 27: Would you recommend your bank to others? (% of Yes ) TEB 77.5% NLB Prishtina 69.4% Procredit 67.1% a per Biznes 65.6% a Ekonomike 65.6% Raiffeisen 60.0% a Kombetare Tregtare 52.8% Ninety percent of all interviewed business clients said they will continue purchasing the same products/services from their bank. Asked if they ever offered constructive criticism or suggestions for product/service improvement to their bank, only 19 percent stated to have done so. Forty-four percent of them said that those suggestions have been taken into consideration and concrete improvements were noticed in that regard. Business clients of a per Biznes were the most likely to continue to be customers of that bank for another year, whereas the clients of NLB Prishtina are the least likely to do so. The average scores for each bank regarding this question are presented in the chart below. 28
Commercial ing Industry: Customer Satisfaction Survey Figure 28: How likely are you to continue to be a customer with your bank for another year? (Rate from 1 to 7, where 1 = Not likely at all, 10 = Very likely) a per Biznes 8.31 TEB 8.14 Procredit 7.98 a Kombetare Tregtare 7.83 Raiffeisen 7.81 a Ekonomike 7.48 NLB Prishtina 7.05 Thirty-seven percent of the interviewed respondents said they would change the bank if they lost trust in their current one. Twenty-eight percent said that they would change the bank because of low quality of services, whereas 21 percent said they would change if because of unsuitable pricing. Figure 29: Can you please tell us what would make you go to another bank? Lost trust to the bank 37% Low quality of services 28% Unsuitable pricing 21% Low flexibility for loan approval Low efficiency of loan approval and disbursement Limited product range No longer need to use the service Other 4% 3% 2% 1% 4% 29
Commercial ing Industry: Customer Satisfaction Survey The reasons that would make business clients of each bank to switch banks are provided on the table below. As can be seen, for clients of the majority of banks the main reason they would consider switching banks was losing trust in their bank, for clients of Raiffeisen the main reason they would go to another bank was unsuitable pricing. Figure 30: Can you please tell us what would make you go to another bank? Disaggregated by bank Can you please tell us what would make you go to another bank? Raiffeisen Procredit What bank do you mainly use? a Ekonomike TEB a per Biznes a Kombetare Tregtare NLB Prishtina Low quality of services 25.7% 30.1% 31.3% 28.2% 37.5% 16.7% 30.6% Lost trust to the bank 27.1% 37.0% 37.5% 35.2% 37.5% 52.8% 38.9% Limited product range 1.4% 3.1% 4.2% 2.8% Unsuitable pricing 31.4% 23.3% 18.8% 18.3% 12.5% 16.7% 19.4% Low flexibility for loan approval 1.4% 5.5% 6.3% 2.8% 3.1% 2.8% 5.6% Low efficiency of loan approval and disbursement process 4.3% 1.4% 3.1% 4.2% 3.1% 2.8% 2.8% No longer need to use the service 2.9% 2.8% 3.1% Other 5.7% 2.7% 4.2% 3.1% 5.6% 2.8% 30
Commercial ing Industry: Customer Satisfaction Survey 3.2. Individual Clients 3.2.1. branches, products and services Similarly to the case with business clients, when asked to rate products and services of the banks offer on a scale from 1 to 10, the average responses ranged between 5 and 8. The highest rated products/services were payroll processing, current account, and savings account, whereas the lowest rated product/service was loan. Figure 31: What is your level of satisfaction with the following products and services? (1 = Not satisfied at all, 10 = Very satisfied) 7.07 6.44 6.86 6.99 6.91 7.11 6.81 7.00 6.98 Average Spread 5.21 1.92 2.09 1.93 1.77 1.87 1.87 1.80 1.91 2.20 2.55 Current account International money transfer Domestic money transfer Interbank money transfer E-banking Payroll processing Standing order Savings account Manual cash payments Loan The table below provides average scores in regard to satisfaction with bank products and services for individual clients of each bank. 31
Commercial ing Industry: Customer Satisfaction Survey Figure 31: What is your level of satisfaction with the following products and services? (1 = Not satisfied at all, 10 = Very satisfied) Disaggregated by bank What is your level of satisfaction with the following products and services? Raiffeisen Procredit What bank do you mainly use? a Ekonomike TEB a per Biznes a Kombetare Tregtare NLB Prishtina Current account 7.05 6.73 7.14 7.37 7.11 7.02 7.08 International money transfer 6.51 6.36 6.75 6.65 6.28 6.33 6.00 Domestic money transfer 6.77 6.92 6.49 7.15 6.79 6.87 6.88 Interbank money transfer 7.24 6.87 7.13 7.07 6.72 7.25 6.50 E-banking 6.83 6.83 7.04 7.07 7.17 6.51 6.85 Payroll processing 7.33 6.86 7.03 7.25 7.22 7.15 6.91 Standing order 6.63 6.66 6.89 7.18 6.72 6.63 6.94 Savings account 6.84 7.05 7.18 7.17 6.86 6.79 7.07 Manual cash payments 7.09 6.81 7.22 7.13 6.88 6.88 6.80 Loan 5.13 4.55 6.04 5.53 5.17 5.05 5.11 Speed of loan approval and disbursement process, branches and ATMs, and information confidentiality are the top three most important attributes for individual clients when choosing a bank. On the other hand, orientation signs and availability of information brochures were regarded as the least important attributes. 32
Commercial ing Industry: Customer Satisfaction Survey Figure 32: How important are the following attributes when choosing your bank? (1 = Not important at all, 10 = Very important) Speed of loan approval and disbursement process Information confidentiality Branches and ATMs Quality of advise Range of services/ products Fees Interest rates Reliability, trustworthiness Proximity of branch office to your workplace Efficient, no wait service Loan payment terms Clean & well cared facilities Brand/image of the bank Range of loan products Working hours Accessibility of key account managers Availability of information brochures Orientation signs Average Spread 1.65 1.80 1.85 1.64 1.85 1.86 2.24 2.48 1.93 1.87 2.19 1.91 2.03 2.20 1.82 2.03 1.65 1.82 8.36 8.21 8.15 8.09 8.02 8.01 7.98 7.94 7.89 7.87 7.85 7.85 7.81 7.71 7.70 7.57 7.42 7.18 The table below provides the scores on these attributes disaggregated by bank. 33
Commercial ing Industry: Customer Satisfaction Survey Figure 33: How important are the following attributes when choosing your bank? (1 = Not important at all, 10 = Very important) Disaggregated by bank What bank do you mainly use? How important are the following attributes a a when choosing your bank? Raiffeisen Procredit a Ekonomike TEB per Biznes Kombetare Tregtare NLB Prishtina Brand/image of the bank 7.86 7.05 8.64 7.46 7.76 8.28 8.23 Reliability, trustworthiness 7.83 7.56 8.58 7.61 8.18 8.40 7.85 Interest rates 7.93 7.57 8.74 7.73 7.67 8.55 7.98 Fees 7.90 7.62 8.55 7.99 8.03 8.38 7.86 Working hours 7.55 7.73 7.91 7.96 7.45 7.92 7.21 Loan payment terms 7.87 7.65 8.38 7.64 7.85 8.04 7.78 Accessibility of key account managers 7.72 7.28 8.00 7.58 7.82 7.25 7.44 Range of services/ products 7.91 7.78 8.33 7.99 7.97 8.14 8.23 Range of loan products 7.74 7.22 8.38 7.63 7.85 8.11 7.32 Speed of loan approval and disbursement process 8.45 7.82 8.55 8.42 8.56 8.47 8.56 Proximity of branch office to your workplace 7.83 7.80 8.28 7.83 7.74 7.98 7.81 Branches and ATMs 7.98 7.84 8.23 8.19 8.34 8.29 8.50 Information confidentiality 8.29 7.81 8.69 8.17 8.06 8.45 8.17 Quality of advise 8.19 7.63 8.50 8.13 7.94 8.27 8.11 Clean & well cared facilities 8.03 7.39 8.14 7.85 8.00 8.05 7.60 Efficient, no wait service 7.88 7.26 8.38 7.74 8.11 8.11 8.02 Availability of information brochures 7.42 7.13 7.68 7.41 7.45 7.38 7.70 Orientation signs 7.25 6.61 7.34 7.19 7.18 7.51 7.49 In terms of satisfaction with the abovementioned attributes of banks, individual clients in general showed highest satisfaction with clean and well cared facilities, information confidentiality, and reliability, trustworthiness. Meanwhile, attributes with which individual clients showed least satisfaction were interest rates, fees, and loan payment terms. 34